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23/01/2017

When 1MDB's 2014 Group audited accounts were delayed and only released in November 2014, the results were shocking! A profit after tax of RM778 million in 2013 had nosedived to a loss of RM665 million!

The profit of RM778 million in 2013 had in fact been deliberately inflated by paper gains of RM2.7 billion arising from revaluing development land. Without that artificial paper gain and other paper losses, 1MDB actually, operationally, lost about RM349 million!

The LOSS of RM665 million in 2014 had also been deliberately inflated by paper gains of RM897 million, again arising from revaluing development land. Without that artificial paper gain and other paper losses, 1MDB actually, operationally, lost about RM976 million!

As a Group, 1MDB had actually lost staggering hundreds of millions of ringgit every year from 2011-2014:

2014 (976) million loss

2013 (349) million loss

2012 (525) million loss

2011 (282) million loss

Not surprising then, that it was from 2011 that 1MDB's top executives started to add in huge paper gains on land to mask real operating cash losses.

Given also that by 2014, it had borrowed some RM42 billion and incurred further other derivative debts of RM4.11 billion, the interest cost had risen to RM2.4 billion, with insufficient cash to service loan interest or build up reserves for loan capital repayments. Goldman Sachs alone had netted some unheard of 11% commission and fees on US$6.5 billion in loans it had raised for 1MDB. Some of the interest rates 1MDB had agreed to defies belief when compared to the market.

If we exclude the results of IPP companies from above P&L, the Holding Company's (HC) financial results would be far worse. Do remember that by consolidating the P&L of IPP subsidiaries (as required by company law), the HC's results look impressive. But in reality, unless the IPPs pay enough cash dividends regularly, the HC will have little cash flow to service the $42 billion of loans!!!

Significantly though, as has now been confirmed by the USA Department of Justice (DoJ) Report and Affidavit on kleptocracy by Najib, Rosmah, Jho Low and top 1MDB executives, massive fraud and false accounting had taken place at 1MDB. Amounts classified as 'Investments Available for Sale' and 'Deposits' in 1MDB's balance sheet were backed by worthless "Units" and valuations and confirmations by dubious "fund managers" linked to Jho Low.

When the 2014 accounts were released and DAP's Tony Pua lambasted 1MDB's poor performance and management, its Chairman of Board Advisors, Finance Minister and Prime Minister Najib boasted that 1MDB had RM51 billion in assets. Yes, RM51 billion if you inflate the figures with paper gains and huge amounts of goodwill - some RM7.5 billion at cost - that should have been written off.

What these almost $7.5 billion of goodwill in the books of the IPPs represents is a mystery to me, especially since you can't write a cheque and cash it.

The balance sheet above is shown in a simplified form to give us a very clear picture of the real financial position of 1MDB. The RM32 billion deficit is more realistic, given that from April 2014 to mid-2016, 1MDB was unable to service interest or loan capital repayment without bail out loans from the MoF, local banks/GLCs and Arab "partners". 1MDB also claimed that it had paid US$6.5 billion to IPIC and its subsidiaries. However, this is now a confirmed fraud, with the money diverted to parties linked to Jho Low and Najib. At current US$ exchange that is an additional RM28 billion.

That brings 1MDBs loan debts to about an astonishing $84 billion currently - a disaster of Titanic proportions by any reckoning, as follows:

Loan Debts above - RM46 billion

Exchange Rate Loss - RM10 billion

IPIC debt - RM28 billion

Total - RM84 billion

Little wonder then that Najib is busy selling off 1MDB's prized land gifted to it at below market value.

60% of Bandar Malaysia has been sold to a China consortium in 2016. The IPPs too were flogged off to another China state company for RM9.83 billion, resulting in a RM2 billion loss. What happened to Najib's original explanation for buying the IPPs at inflated valuation - that we need to be in control of our energy banks?

What is curious though is that 1MDB CEO Arul Kanda had said in 2015 that 1MDB had utilised RM18 billion cash to acquire the IPPs. CLICK HERE. However, the 2013/2014 audited accounts show that 1MDB only paid RM12 billion for the IPPs. What happened to the balance of RM6 billion? CLICK HERE for the 2014 audited accounts. As the RM6 billion loans were "inherited" from the IPPs, there was no cashflow out. So, why would 1MDB have paid RM6 billion to any bank or entity or person?

The whole world now knows that Najib is desperate to cover up the huge hole in 1MDB's balance sheet caused by his own greed, utter incompetence and thieving and looting mentality. Sarawak Report had exposed as far back as July 2016 that he was planning to inflate the cost of the East Coast Railway Link project by RM30 billion. China once again seems to be coming to bail him out.

What else will Najib flog to China to save his skin, and at what cost to the sovereignty and finances of the nation?

NB: All figures quoted here were derived from 1MDB's audited accounts for 2010-2014. The figures have been re-arranged so as to show the true profit/loss and balance sheet positions without cosmetics and window dressing. The respective auditors were:

2013 & 2014 - Deloitte

2010 - 2011 - KPMG

It is relevant to note that Deloitte gave clean audit reports for 2013 and 2014. In 2016 however, in the wake of the USA DoJ action on kleptocracy at 1MDB by mainly Najib, Deloitte issued a startling statement that their 2013 and 2014 reports could not be replied upon, and subsequently resigned. Under no circumstances can audit reports accepted and approved by shareholders, be withdrawn by the auditors unless fraud is proven, on which Deloitte has been absolutely silent. A lawsuit has yet to be filed by anyone against Deloitte for professional negligence!

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MURDERED IN MALAYSIA: THE ALTANTUYA STORY BY E.S. SHANKAR

TO BUY BOOK CLICK ON PICTURE

MURDERED IN MALAYSIA: THE ALTANTUYA STORY BY E.S. SHANKAR

Dear Readers,

Have you read the explosive new ebook "Murdered In Malaysia: The Altantuya Story" yet? The mystery surrounding the murder of Mongolian model Altantuya Sharriibuu has long troubled Malaysia and E.S Shankar's new book sheds light on many unanswered questions.

This meticulously researched, honest and informative book is for you and for all those Malaysians who want to know the full truth about the disgraceful and barbaric murder of a Mongolian girl, who had the misfortune to associate herself with persons which led ultimately to her murder and the disintegration of her dead body, and perhaps her unborn child, by explosion.

E.S Shankar has produced a tour de force in terms of research and the comprehensive scope of his enquiries, leaving no stone unturned in his quest to bring to light facts that were disgracefully suppressed and covered up by one of the most shocking examples of interference in the judiciary that Malaysia has experienced in its history. The impact on the independence of Malaysia's law enforcement agencies has been far-reaching and malign.

As E.S Shankar's book makes clear, the murder of Altantuya Shaariibuu was not an unpremeditated killing, carried out by "rogue cops". It was planned with care and needed the intervention of very powerful people to make it happen - and then when it was discovered, to cover up the truth. And all that simply to save the face and reputation of a very powerful Malaysian personality.

Malaysia owes a debt to this brave author who has dared to lay out the facts that others have attempted to hide. His book may read like a thriller, but it is the chilling truth and everyone should take time to understand its consequences.

- Sarawak Report Editor Clare Rewcastle Brown

GREATEST QUOTES OF 2012/2013

1. Exercising democratic rights could place society in a never-ending vicious cycle of instability and insecurity.

2.We are doing the right thing if everybody is unhappy, which means you have to give up something . . . You cannot say this is my right, I must get it. Then others will say they want their rights, too.

'TIGER ISLE-A GOVERNMENT OF THIEVES' by E.S. SHANKAR

SYNOPSIS OF 'TIGER ISLE - A GOVERNMENT OF THIEVES' by E.S. SHANKAR

Tiger Isle or Pulipore, the corruption capital of the world that mysteriously emerged from the depths of the waters of South East Asia in 200 CE, spirals towards its tipping point in 2012.

Hundreds of billions of dollars of cost over-inflated defence and other government procurement and infrastructure development contracts, national projects “that MUST not fail, ever” and the cosy “win-win” relationships between government and fraudtrepreneur crony “corpo-rat captains of industry”, send Tiger Isle hurtling towards the precipice of third world status and bankruptcy.

Tiger Isle’s evil and despotic President Kapalin plays every card, from race to Tigerist religion to hounding his political nemesis, Maitreya, with trumped-up rape and sodomy charges, to cling on to power. Failure is not an option, as Kapalin and his ambitious and self-promoting wife, expensive Birkin handbag toting ‘Big Porka’ Natasha, are also implicated in the cover-up of the gruesome murder of Tiger Isle’s Oscar-winning actress, dynamited to bits in a secluded forest.

Now, government auditor Rekha and her seven best friends race against time and the threat of a prophecy being fulfilled to save Tiger Isle and its 30 million inhabitants from annihilation, even as Kapalin plots and embarks upon apocalyptic plans that could prove to be the harbinger of World War III.

On the horizon, Rekha, married and a mother of two, sees the looming menace and racist aims of Kapalin’s mentor, bitter ex-President Bhairav, who stirs up extremist and right-wing Tigerist sentiments to undermine Kapalin and replace him with his own son as President.

The fate of a nation hangs in the balance as Rekha prepares for battle with her famous cry of “We are all of One Race, the Human Race.”

Mixing suspense with humor and pathos, E.S. Shankar’s superbly written, original and stunning debut novel ‘TIGER ISLE – A GOVERNMENT OF THIEVES’ is a classic story of endemic corruption in South East Asia and its various frightening totalitarian and racist regimes that pose as benign multi-racial, multi-religious, multi-ethnic and multi-cultural democracies.

“A great read simply for its thrilling plot and wonderfully-imagined setting, but an even better one if you're interested in Malaysian/ South East Asian politics & history.” S.Ganesan.

To purchase this novel online go to http://gbgerakbudaya.com/bookshop/index.php?main_page=product_book_info&cPath=1_5&products_id=1689

A.B.U.Anythang But UMNO

A.B.U.Anything But UMMI

A.B.N.Anything But NALLA

A.B.ZN.Anything But ZUL NORDIN

A.B.WCKAnything But Wee CK

BABUAn Indian Actor. Lol!

Rakyat detepikan,Kedaulatan lanun BUMNO/BN diutamakan.

BERSIH, OPPOSITE OF KOTOR! CLEAN, NOT DIRTY!

BAHARUDDIN AHMAD, R.I.P.

The first martyr of Bersih 2.0 09/07/2011.
Blood is on PM Najib's hands.
We will never forgive you, Najib.

CONGRATS NICOL DAVID - MALAYSIA'S GREATEST EVER SPORTSPERSON!!

Nicol successfully defends world squash title and maintains WORLD NO.1 Ranking!!

Egg Jokes for Eggciting Times

Fuck! Chicken Little, is that you??? courtesy of http://www.flickr.com/photos/36998705@N00/128517029/

malaysiasoros@terkini. ballsups_pseuds.con quotes

1. Jagdeep then asked Nizam (of Utusan) to explain what ultra vires meant, for the benefit of the court. Nizam looking confused, replied: “To insult.”Jagdeep then told Mohd Nizam that his misunderstanding of the word had caused chaos in the country because the word actually means “beyond the powers”. Malaysian Insider.2. "Is Najib qualify to be next PM?" Now you know why the Ministry of (ms)Education wants to do away with teaching Science & Maths in English. It's an utter waste of time!

3. "It doesn't mean anything that Malaysia is No.185 in FIFA's World Rankings. That is determined only by the number of games you play in a year!!" ex-Malaysia footballcoach4. "The presence of criminals also posed a threat to the safety of Police Officers. So, the Police Base was closed!" Minister for Home Office 17/10/08